Jensen Huang, CEO of AI chip leader NVIDIA (Nvidia Corp.), said that with the further development of artificial intelligence models, from being able to answer simple questions to having complex reasoning capabilities, the market demand for computing power has also increased significantly.
In an interview with CNBC's "Squawk Box" on the 8th, Huang Jensen said that this year, especially in the past six months, computing demand has increased significantly.
He said that the computing power used by AI inference models has grown exponentially, and market demand has also increased due to good results. "AI has become smart enough that everyone wants to use it" and "we are now seeing two exponential growths at the same time."
Huang Renxun mentioned that the demand for Blackwell series graphics processors (GPUs) is "really, really high" and "I think we are at the starting point of a new construction and the beginning of a wave of industrial revolution."
Huang Renxun also emphasized that the AI industry must build new power generation facilities outside the public power grid and respond quickly to power demand to avoid consumers being affected by rising electricity prices. He believes that the data center should be equipped with natural gas power generation equipment, and then use nuclear power at some point in the future. He said, "We should invest in every possible way to generate electricity. Letting the data center generate its own electricity may be much faster than connecting it to the grid. This is what we must do."
When asked which country has won the AI race, Huang Renxun responded that the United States is currently "not leading China by much." He said that the Beijing government is building the power generation facilities needed for AI much faster than the United States.
NVIDIA surged 2.2% after hearing the news, closing at $189.11, a record closing high. NVIDIA's foundry partner TSMC ADR simultaneously rose 3.57% to close at $304.52, a record closing high.
Other AI concept stocks also jumped higher. ADRs of ASIC design services giant Marvell Technology, Inc., memory manufacturer Micron Technology, Inc., and semiconductor IP giant Arm Holdings PLC surged 6.36%, 5.84%, and 4.66% respectively.